GRAND RAPIDS BANKRUPTCY ATTORNEY - COMMON TERMS
When you are facing financial problems and have questions about your bankruptcy options in the Grand Rapids area, it is important to have the representation of a good bankruptcy attorney. Krupp Law Offices P.C. has been providing quality bankruptcy representation for over 85 years. If you are facing financial problems, call the bankruptcy attorneys at Krupp Law Offices P.C. for a free phone consultation. During your phone consultation, our attorneys will provide you with immediate answers to your questions and schedule an appointment with one of our bankruptcy attorneys.
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Secured Creditor: A secured creditor is a creditor who holds collateral to guarantee repayment of the debt (for example, a home or a car).
Unsecured Priority Debt:An unsecured priority debt are typically those debts that are nondischargeable (i.e. you cannot extinguish the debt in bankruptcy) and do not have collateral to guarantee the repayment. They debts are typically taxes and student loans.
Unsecured Debt: Generally an unsecured debt is everything that is not secured or unsecured priority debt. Unsecured debt would include medical bills, credit cards, consolidation loans without collateral, or any other obligations. Typically general unsecured creditors do not receive any repayment in a chapter 7 bankruptcy. In contrast, general unsecured creditors typically receive a partial repayment of a debt in a chapter 13 bankruptcy.
Bankruptcy Petition: A bankruptcy petition is a request by an individual to receive a discharge of their financial obligations. A bankruptcy petition contains a request for a discharge, a list of assets of the debtor, a list of debts, a budget, and answers to certain financial questions. The filing of a bankruptcy petition starts the bankruptcy process.
Automatic Stay: An automatic stay is a court order that is placed on all creditors to stop collection actions against a debtor who has filed bankruptcy.
341 Meeting or First Meeting of Creditors: A 341 meeting is a meeting with a trustee to review your schedules. A 341 meeting is held at the trustee's office and not at the courthouse. A judge is not present. The term 341 meeting refers to the specific bankruptcy code section. A 341 meeting is also commonly referred to as A the first meeting of creditors. Typically, the trustee requires basic financial information at the 341 meeting and will ask you general questions about your finances. A 341 meeting is not adversarial. Typically, no creditors will appear.
Discharge of Debtor: A discharge is a court order that is mailed to your creditors informing them that you have received relief under the bankruptcy code and that they are no longer allowed to collect the debt. This court order does not prevent you from later voluntarily paying your obligations.
Complaint of Nondischargeability: A complaint of nondischargeability is typically filed by a creditor who is making a claim that their obligation is nondischargeable even though the debtor filed bankruptcy. Under the bankruptcy code, certain obligations such as debts incurred as a result of fraud, cash advances within 60 days prior to filing bankruptcy, and charges made within 60 days prior to filing for luxury goods are considered nondischargeable. Additionally debts allocated in a divorce judgment can be nondischargeable.
Bankruptcy Court: Bankruptcy Court is a division of the United States District Court. Bankruptcy Court is based on Federal Law.
Trustee: A trustee is a court appointed official that reviews your bankruptcy schedules to make sure that they are accurate and to determine whether any assets are in excess of your exemptions.
Exempt Property (Exemptions): Under the bankruptcy code, certain property is exempt. This means a debtor may keep this property and still go through bankruptcy. This property is kept by the debtor and the creditors cannot take the property. Specifically, the bankruptcy code has federal exempts:
- Equity in the debtor’s primary residence up to $23,675.00 per person. "d(1) exemption"
- Equity in a motor vehicle up to $3,775.00 "d(2) exemption"
- Household goods up to a value of $11,525.00 "d(3) exemption"
- Jewelry up to $1,600.00. "d(4) exemption"
- Exemptions for tools up to $2,375.00, "d(6) exemption"
- Life insurance values up to $12,625.00.
- Miscellaneous exemption in any property the debtor wishes up to $1250.00. In addition, up to $11,850.00 of unused exemption in a debtor's primary residence can be used as a general exemption. As a result, an individual who does not own a residence may exempt up to $11,850 in any property they wish in addition to the general $1,250.00 exemption."d(5) exemption"
- Typically all retirement accounts.
- All of the above exemptions are doubled for a married couple.
If you are facing financial problems, a good bankruptcy attorney is not optional, it is a requirement! Our bankruptcy attorneys can answer your questions with straight talk. Having the right bankruptcy attorney on your side can relieve your stress during difficult financial times. Our bankruptcy attorneys have over 85 years of bankruptcy experience. We can provide you with excellent bankruptcy representation.
Krupp Law Offices P.C. is located in downtown Grand Rapids, Michigan and has the right bankruptcy attorney for you. We represent clients in all bankruptcy matters throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, Muskegon, and Ionia.
Call for a free phone consultation. Our office can help.
161 Ottawa NW Suite 404
Grand Rapids MI 49503